China is set to reverse a 32-year policy by imposing a 13% Value-Added Tax (VAT) on all contraceptive items, including condoms, starting January 2026. This major shift is aimed at boosting the country’s persistently declining birth rate.
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- New Tax: 13% levy under the revised Value-Added Tax Law.
- Effective Date: January 2026.
- Reversal: These products have been tax-free since 1993, a status granted when the government was promoting birth control under the strict one-child policy (1980–2015).
- Official Comment: The government has not yet officially commented on the contraceptive tax specifically.
Demographic Crisis
The policy comes as China grapples with a demographic decline:
| Metric | 2024 Data | Context |
| Population | Dropped by 1.39 million to 1.408 billion | Marks the third consecutive year of decline. |
| Birth Rate | 6.77 births per 1,000 people | A slight increase from 6.39 in 2023, but still critically low. |
| Total Births | 9.54 million | Up from 9.02 million in 2023. |
The UN further predicts a steep decline, estimating that the number of Chinese women of reproductive age (15–49) will fall to under 100 million by the end of the century.
Other Pro-Natalist Measures
The tax is part of a broader government strategy to encourage childbearing, which includes:
- Cash rewards for newborns offered by local governments.
- Extension of parental leave.
- Discouraging abortions that are not considered “medically necessary.”
